Expansion of Credit Facility and New Contract for Monitoring Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce that it has entered into an amended and restated Commitment Letter with its primary lender which provides for a total of $6.0 million in equipment financing.
The Company is also pleased to announce that it has entered into a contract with North America's largest equipment auction house to provide fixed monitoring services at its Nisku, Alberta facility for 24 months. Zedcor has also received a verbal commitment from the Customer to use the Company's fixed monitoring services at its 13 remaining locations across Canada, including its location in Montreal, Quebec for which Zedcor is already providing fixed monitoring services with contract terms being negotiated.
Todd Ziniuk, President and CEO of Zedcor, stated: "This additional financing will help us execute our expansion plans for 2022. We are seeing nearly full utilization for our MobileyeZ security tower fleet and demand for our services continues to be robust. Our goal is to ensure we have equipment available to provide security solutions to our customers. Our expansion strategy remains on track with the recent hiring of our VP, National Accounts based in Ottawa, Ontario and we are starting to build demand for our MobileyeZ security towers in Eastern Canada. Our fixed monitoring services continue to gain traction as well, with our customers seeing the value of using technology-based security solutions over the traditional manpower based security model. The contract we signed to provide fixed monitoring services with our prominent Customer has already yielded positive results for them with two burglars arrested at their Montreal location in mid-April. The additional financing positions us well to meet our customer's demand and continue to grow our footprint across Canada."
Zedcor currently has $2.7 million drawn on its equipment financing facility and the Amended Commitment Letter will provide Zedcor with an additional $3.3 million which is immediately available to the Company. Zedcor anticipates it will draw down on the remaining availability prior to the end of 2022 to fund its capital program for the purchase of additional MobileyeZ security towers.
The Amended Commitment Letter did not alter any material terms of the Company's prior loan agreement other than an additional underwriting fee of $15,000, equivalent to 0.5% of the increase in the equipment financing facility. The Company's financing agreement remains secured by the existing general security agreement, which provides for a first charge security interest over the Company's present and future personal property. The Amended Commitment Letter also retains the same financial covenants and standard non-financial provisions under the previous financing agreement.
About Zedcor Inc.
Zedcor Inc. is a Canadian public corporation and parent company to Zedcor Security Solutions Corp. Driven by our guiding principles of being pioneers, innovators and honest, Zedcor is engaged in providing technology based security & surveillance services in Western and Central Canada. The Company is disrupting the security industry with its three main service offerings to customers across all market segments: 1) rental, service and remote monitoring of its proprietary MobileyeZ security towers; 2) live monitoring of fixed site locations; and 3) security personnel. The Company trades on the TSX Venture Exchange under the symbol "ZDC".